ROAS Calculator
Work out your return on ad spend from revenue and spend, or flip it around: the revenue you need to hit a target ROAS, and the max you can spend at your current revenue.
ROAS = revenue attributed to ads ÷ ad spend. A 4x ROAS means every $1 of ads returned $4 of revenue — whether that is profitable depends on your margins (see the breakeven ROAS calculator).
Frequently asked questions
How is ROAS calculated?
ROAS = revenue attributed to ads ÷ ad spend. If you spent $3,000 on ads and they generated $12,000 in revenue, your ROAS is 4x (sometimes written 400%).
What is a good ROAS?
It depends entirely on your margins. A 4x ROAS is comfortably profitable for a store with 40% contribution margins but loses money below a 2.5x breakeven. Calculate your breakeven ROAS first, then set targets above it.
What is the difference between ROAS and ROI?
ROAS only compares ad revenue to ad spend. ROI accounts for all costs — product, shipping, fees, overhead — and measures actual profit. A campaign can have a high ROAS and still be unprofitable.
What is ACoS and how does it relate to ROAS?
ACoS (advertising cost of sales, common on Amazon) is the inverse of ROAS expressed as a percentage: ACoS = ad spend ÷ revenue. A 4x ROAS equals a 25% ACoS.